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PROTECTION:-
It is surprising that whilst people insure their houses, house contents, cars and even their baggage when they go on holiday, they all too often fail to insure the two things that are most vital to their family - their income and their life.
INCOME PROTECTION cover (also known as Permanent Health Insurance or PHI) provides long term income replacement in the event of incapacity due to accident or sickness and is designed to "switch on" when the cover from your employer (if any) ceases. Don't be lulled into thinking that the State will provide in such circumstances, as payments are at subsistence levels only and any additional benefits or allowances are often only achieved (if at all) after a huge amount of effort. Even then, they don't come close to replacing a lost salary.
The cost of PHI is often less than you might think and, as there are many options available, it is usually possible to find something to fit your budget.
On the other hand, LIFE ASSURANCE pays out on death and provides a lump sum or income for your loved ones. Of course, nothing can help get through the emotional upheaval should this happen, but at least providing capital offers the peace of mind that your family is well-looked after financially and do not have to worry about money alongside everything else. It is possible for husband and wife to effect joint cover to protect each other and/or their children. The cost of life assurance has fallen substantially over the past few years and high levels of cover can be provided for most people at quite low monthly premiums. It may also be possible to replace existing cover at a lower cost.
As life assurance premiums are very reasonable, review your requirements is not something you should put off, especially as there are many different options available now, one of which should be appropriate for you.
In addition, under the heading of 'protection' is CRITICAL ILLNESS cover. Medical advances have accelerated in the last few decades so that the chances of surviving a serious illness have improved dramatically. However the repercussions of, for example, cancer or a heart attack are still potentially very costly. It is often impossible to work normally and changes in lifestyle can mean reduced earnings and the purchase of expensive equipment. Critical illness cover caters for these problems by providing a lump sum on diagnosis and survival (for 15-30 days) from an extensive range of illnesses. The contract pays out a tax-free lump sum which can then be used to pay off a mortgage or fund an income.
We realise that clients do not have a bottomless purse and that priorities need to be set. We can assist by offering a professional approach to planning your finances now to provide security in the future.
PENSIONS:-
For most people, retirement planning is a long term goal, so that you need to put money away regularly over your working years to build up enough assets to give you a worthwhile income when you retire.
It seems obvious that the first vital step in building the biggest possible pension fund is to start at the earliest possible opportunity, but far too many people leave pension contributions until much too late. The savings that you make in the early years are the MOST important as they have the most time to grow, and you should not underestimate the contribution to your total pension that these early payments make.
We give advice on the following types of pension arrangement -
Personal Pensions * Stakeholder Plans * AVCs * Employers' Money Purchase Arrangements * SIPPs * SASSs * Income Drawdown * Annuities * Transfer Plans
It is worth quoting from the Sunday Time Book of Personal Finance:-
"The simple investment process has become a maze of options. And it can be difficult to plan a route through the maze when you are still young enough for pension provision to be affordable. The fact is that most people take no interest in pensions until they get within sight of them. The one basic principle to remember is that th only way of enjoying a good income in retirement is to make sure it is saved up for during your working life - it is too late after that"
Contact us for a sensible discussion about YOUR pension requirements.
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